Please comment of Q2 Earnings for BCE .
Thanks,
George
BCE reported a slight revenue decline of -1% to $6.01B, compared to the estimate of $6.06B, EPS came at $0.72, beating the estimate of $0.7.
The operating results were largely in line with expectations. Subscribers' growth for the Internet remains healthy. BCE slowed down its capex investment meaningfully from $1.3B to $1B, which helped free cash flow a bit. Adjusted EBITDA grew 2% to $2.7B. Higher interest expenses also put more pressure on the company’s earnings. BCE also confirmed its guidance for FY2024. Compared to FY2023, BCE expects revenue growth to be in the range of 0-4%, while adjusted EPS to be down from -7% to -2%. The company is planning a significant reduction in capex, which we think could be positive for share price performance going forward. Overall, the result was okay, in-line with the previous quarter, but with interest rates peaking and capex decline, we think there is room for some recovery in BCE's share price.